Significantly lower losses on financial instruments
The KLP Banken Group finances mortgage loans and other credits in the retail market and provides lending to municipalities, county administrations and companies carrying out public sector assignments. Additionally, the KLP Banken manages a lending portfolio on behalf of its parent company Kommunal Landspensjonskasse (KLP). The Group manages a lending total of NOK 122 (118) billion. The overall business of KLP Banken AS and its subsidiaries is nationwide and divided into the retail market and public sector loans business areas.
In the retail market KLP Banken shall provide products and services at competitive terms to contribute to enterprises having elected KLP as their pension scheme provider are perceived as attractive employers.
In the public sector market KLP Kommunekreditt AS, together with KLP, shall contribute to market competition and thereby access to favorable long-term financing for the sector.
KLP Banken AS is wholly owned by KLP. KLP Banken AS has two wholly owned subsidiaries, KLP Kommunekreditt AS and KLP Boligkreditt AS. The main office is in Trondheim.
Income statement
At the end of the third quarter, the KLP Banken Group achieved a pre-tax profit of NOK 203.1 (97.5) million. The change is mainly related to increased net interest income in both business areas and reduced losses on financial instruments. Profit and loss per business area show NOK 139.0 (57.8) million in the retail market segment and NOK 64.1 (39.7) million in the public sector segment. Group total income after taxes and actuarial adjustments amounted to NOK 215.6 (105.2) million by third quarter.
Net interest income for the KLP Banken Group by third quarter end amounted to NOK 339.7 (258.2) million. The change is mainly due to increased margins between lending and financing on average and from the fact that increased interest rates give a higher return on lending financed with equity.
Net charges and commission income amounted NOK 20.9 (19.8) million. In addition to lending growth, the change is also due to card fee rates adjustments.
The bank group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 46.0 (42.9) million by third quarter.
Operating expenses including depreciations amounted to NOK -199.6 (-180.7) million. The increase is mainly due to increased external service prices as well as wage growth.
At the end of the third quarter the income statement includes a net loss on financial instruments of NOK -2.9 (-42.8) million. This is mainly due to market value changes in the liquidity investment portfolios and to one-off expenses from buy-back of own bond issues. The change from last year is mainly linked to the fact that the value of the liquidity portfolio has been more stable.
So far in 2023 realized losses and loan loss provisions amounts to NOK -1.0 (0.1) million. The increase in interest rates in recent years has not yet let to significantly increased credit losses on mortgages, but high inflation and a higher level of interest rates may in the long run lead to a reduced serviceability of loan customers. In 2023 there are also no realized loan losses related to public lending.
Lending and credits
On 30 September 2023, the KLP Banken Group had a lending balance of NOK 43.1 (42.1) billion. The distribution between the retail market and public sector lending was NOK 23.7 (23.4) billion and NOK 19.4 (18.7) billion, respectively.
In the retail market, KLP Banken had a mortgage growth of NOK 0.5 (1.3) billion so far in 2023. Reduced demand for new loans and refinancing is believed to be linked to increased interest rates and inflation contributing to lower market growth. New mortgage loans payments so far in 2023 amount to NOK 6.0 (7.0) billion. The main target group of mortgage loans are members of the pension schemes in KLP.
Mortgage loans amounting to NOK 3.5 (3.8) billion are sold to the daughter company KLP Boligkreditt AS by third quarter end. Managed mortgages for KLP show a stable volume in the same period.
Drawn credits on credit cards have been at a stable level since the turn of last year. However, unused credit and the number of active credit cards customers have steadily increased since the turn of last year.
The KLP Banken public sector lending balance has also increased since last year-end, by NOK 0.2 (0.9) billion. Managed public sector lending on behalf of KLP has additionally increased by NOK 2.9 billion. New payments of public loans so far in 2023 amount to NOK 7.7 (6.0) billion for KLP and KLP Banken together.
Liquid investments
Available liquidity is invested in other banks and in interest-bearing securities. Deposits in credit institutions were NOK 1.3 (1.2) billion. Securities held, booked at fair value in the KLP Banken Group, was NOK 4.7 (5.8) billion at the end of the quarter.
Net profit and loss due to market value changes on securities held at third quarter show a booked net income of NOK 3.1 (-34.6) million.
Borrowing
The KLP Banken Group's external financing comprises deposits, sertificates and bonds. On the reporting date, deposits from individuals and companies amounted to NOK 14.4 (13.6) billion and issued securities amounted to NOK 31.6 (32.6) billion. Of the outstanding volume of issued securities, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS amounted to NOK 19.4 (18.8) billion and NOK 11.2 (12.6) billion respectively. All covered bond issues have achieved Aaa rating. Outstanding securities debt in KLP Banken AS amounted to NOK 1.0 (1.2) billion.
Risk and capital adequacy
The KLP Banken Group is exposed to various types of risks, and the bank has established a framework for risk management aimed at ensuring risks are identified, analysed and subject to management using policies, limits, procedures and instructions.
The bank is to have a prudent risk profile and earnings are to be principally a result of borrowing and lending activities as well as liquidity management. This means that the bank is to have low market risk, and interest rate risks arising within the borrowing and lending activities are reduced using derivatives.
The KLP Banken Group and its subsidiaries are to have responsible long-term financing and limits have been established to ensure that that this objective is achieved.
The credit risk associated with the banking group assets is low, and lending is mainly limited to loans with local government risk and loans with lien on housing property. Management of the bank's liquidity is conducted through investments in other banks satisfying high credit quality requirements and in securities in accordance with Board-approved credit lines.
At the end of third quarter 2023, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 898 (2 770) million. Eligible Tier 1 and Tier 2 capital comprises core capital only. Lending is risk-weighted in accordance with the authorities' capital adequacy regulations. The KLP Banken Group had a capital adequacy ratio of 20.2 (19.7) percent at the reporting time. The minimum statutory requirement is 14.0 percent core capital adequacy and 17.5 percent capital adequacy. Leverage ratio was 5.8 (5.5) percent. Here the requirement is 3.0 percent.
Income statementKLP Banken Group
NOTES
NOK THOUSANDS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Interest income, effective interest method
545 681
280 704
1 444 913
681 424
1 079 475
Other interest income
88 293
39 534
258 646
97 739
174 402
3
Total interest income
633 974
320 238
1 703 559
779 162
1 253 877
Interest expense, effective interest method
-483 213
-206 868
-1 275 180
-480 006
-818 588
Other interest expense
-31 845
-14 155
-88 668
-40 968
-66 602
3
Total interest costs
-515 059
-221 023
-1 363 848
-520 975
-885 190
3
Net interest income
118 915
99 215
339 711
258 188
368 687
Commision income and income from banking services
8 355
8 140
22 832
21 737
29 483
Commision cost and cost from banking services
-670
-741
-1 957
-1 914
-2 566
Net charges and commission income
7 686
7 399
20 875
19 823
26 917
Other fee income
15 313
12 698
45 975
42 934
58 105
16
Net gain/ (loss) financial instruments
6 433
-6 916
-2 893
-42 817
-26 252
Total other operating income
21 745
5 782
43 083
116
31 853
Salaries and administrative costs
-20 644
-18 089
-63 841
-62 191
-87 701
Depreciation
-945
-1 005
-2 888
-3 011
-4 010
Other operating expenses
-44 558
-38 119
-132 826
-115 521
-154 945
14
Net loan losses
-574
-196
-1 022
50
-323
Total operating expenses
-66 720
-57 410
-200 577
-180 672
-246 979
Operating profit/loss before tax
81 626
54 985
203 091
97 454
180 478
Tax ordinary income
-19 603
-13 089
994
5 238
-14 474
Profit/loss for the period
62 023
41 896
204 085
102 692
166 004
Estimate difference, pension obligation and assets
-2 016
458
15 315
3 280
11 094
Tax on actuarial gains and losses
504
-115
-3 829
-820
-2 774
Items that will not be reclassified to profit and loss
-1 512
344
11 486
2 460
8 321
Changes in the fair value through profit and loss
0
0
0
0
0
Tax on changes in fair value of available for sale financial assets
0
0
0
0
0
Items that may be reclassified to profit and loss
0
0
0
0
0
Other comprehensive income for the period
-1 512
344
11 486
2 460
8 321
Comprehensive income for the period
60 511
42 240
215 571
105 152
174 324
Balance sheetKLP Banken Group
NOTES
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
ASSETS
5
Claims on central banks
74 572
72 569
72 960
5
Loans to credit institutions
1 274 225
1 204 247
1 320 087
4,5
Loans to customers
43 124 278
42 086 145
42 375 461
5,6,13
Fixed-income securities
4 749 545
5 844 943
6 564 627
5,6
Shareholdings
1 187
1 187
1 187
5,6,8
Financial derivatives
141 113
118 114
139 153
Intangible assets
14 329
16 155
15 624
17
Right-of-use assets
14 962
16 833
16 365
Fixed assets
436
436
436
10
Other assets
8 435
8 856
4 816
Total assets
49 403 084
49 369 486
50 510 716
LIABILITIES AND OWNERS EQUITY
LIABILITIES
5,7
Debt securities issued
31 615 951
32 613 189
33 484 932
5
Deposits and borrowings from the public
14 350 590
13 606 782
13 778 881
5,6,8
Financial derivatives
40 651
32 927
25 939
Deferred tax liabilities
4 143
4 120
40 343
17
Lease liabilities
15 544
17 157
16 761
11
Other liabilities
217 093
143 219
143 180
11
Provision for accrued costs and liabilities
26 665
54 798
54 215
Total liabilities
46 270 638
46 472 192
47 544 250
EQUITY
Share capital
1 140 000
1 140 000
1 140 000
Share premium
1 050 000
1 050 000
1 050 000
Other owners' eqyity
726 875
602 142
776 466
Profit for the period
215 571
105 152
0
Total equity
3 132 446
2 897 294
2 966 466
Total liabilities and equity
49 403 084
49 369 486
50 510 716
Statement of changes in equityKLP Banken Group
2023 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners’ equity
Equity 1 January 2023
1 140 000
1 050 000
776 466
2 966 466
Profit for the period
0
0
204 085
204 085
Other comprehensive income
0
0
11 486
11 486
Total comprehensive income for the period
0
0
215 571
215 571
Group contribution received during the period
0
0
159 535
159 535
Group contribution paid during the period
0
0
-209 126
-209 126
Total transactions with the owners
0
0
-49 591
-49 591
Equity 30 September 2023
1 140 000
1 050 000
942 446
3 132 446
2022 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners’ equity
Equity 1 January 2022
1 065 000
825 000
630 782
2 520 782
Profit for the period
0
0
102 692
102 692
Other comprehensive income
0
0
2 460
2 460
Total comprehensive income for the period
0
0
105 152
105 152
Group contribution received during the period
0
0
89 292
89 292
Group contribution paid during the period
0
0
-117 932
-117 932
Owners' equity received during the period
75 000
225 000
0
300 000
Total transactions with the owners
75 000
225 000
-28 640
271 360
Equity 30 September 2022
1 140 000
1 050 000
707 294
2 897 294
2022 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners’ equity
Equity 1 January 2022
1 065 000
825 000
630 782
2 520 782
Income for the year
0
0
166 004
166 004
Other comprehensive income
0
0
8 321
8 321
Comprehensive income for the year
0
0
174 324
174 324
Group contribution received during the period
0
0
89 292
89 292
Group contribution paid during the period
0
0
-117 932
-117 932
Owners' equity received during the period
75 000
225 000
0
300 000
Total transactions with the owners
75 000
225 000
-28 640
271 360
Equity 31 December 2022
1 140 000
1 050 000
776 466
2 966 466
Statement of cash flowKLP Banken Group
NOK THOUSANDS
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges
1 311 446
618 379
984 166
Payments to customers – interest, commission and charges
-310 591
-98 510
-168 854
Disbursements on loans to customers and credit institutions
-10 293 329
-12 404 786
-15 659 148
Receipts on loans to customers
9 616 175
10 233 142
13 246 513
Net receipts on customer deposits banking
571 593
706 083
877 993
Disbursements on operations
-132 719
-112 833
-153 688
Payments to staff, pension schemes, employer's social security contribution etc.
-72 361
-62 308
-80 949
Interest investment accounts
41 383
14 758
31 284
Net receipts/disbursements from operating activities
41 290
127 168
156 254
Net cash flow from operating activities
772 888
-978 908
-766 429
INVESTMENT ACTIVITIES
Receipts on the sale of securities
4 400 411
3 331 631
4 783 697
Payments on the purchase of securities
-2 532 416
-3 202 793
-5 348 540
Receipts of interest from securities
160 869
62 545
101 691
Payments on the purchase of tangible fixed assets
-191
-974
-974
Net cash flow from investment activities
2 028 673
190 409
-464 127
FINANCING ACTIVITIES
Receipts on loans
7 200 000
5 950 000
7 150 000
Repayments and redemption of securities debt
-7 300 000
-5 508 000
-5 808 000
Change in securities debt, own funds
-1 791 696
236 476
118 142
Net payment of interest on loans
-890 098
-355 824
-580 002
Payment of lease liabilities
-1 216
-1 363
-1 563
Group contributions paid
-49 591
-28 640
-28 640
Change in owners' equity
0
300 000
300 000
Net cash flows from financing activities
-2 832 602
592 650
1 149 938
Net cash flow during the period
-31 041
-195 849
-80 618
Cash and cash equivalents at the start of the period
1 340 377
1 420 995
1 420 995
Cash and cash equivalents at the end of the period
1 309 336
1 225 146
1 340 377
Net receipts/disbursements (-)
-31 041
-195 849
-80 618
Notes to the financial statementKLP Banken Group
Note 1 General information
KLP Banken AS was formed 25 February 2009. KLP Banken AS owns all the shares in KLP Kommunekreditt AS and KLP Boligkreditt AS. These companies together form the KLP Banken Group. KLP Banken Group provide or acquire loans to Norwegian municipalities and county authorities, as well as to companies with public sector guarantee. The lending activities are principally financed by issuance of covered bonds. The Group also offers standard banking products to private customers. KLP Banken AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim. The company has a branch office in Dronning Eufemiasgate 10, Oslo.
The company, KLP Banken AS, is a wholly owned subsidiary of Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.
Note 2 Accounting principles
The interim report includes the interim Financial Statements of KLP Banken Group for the period 1 January 2023 – 30 September 2023, with a specification of the results in the 3rd quarter. The interim Financial Statements has not been audited.
The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".
Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2022, please see the annual report for further information.
Note 3 Net interest income
NOK THOUSANDS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Interest income on loans to customers
526 287
272 395
1 399 674
664 697
1 048 171
Interest income on loans to credit institutions
19 394
8 309
45 240
16 727
31 304
Total interest income, effective interest method
545 681
280 704
1 444 913
681 424
1 079 475
Interest income on bonds and certificates
54 162
28 788
162 450
70 431
120 291
Other interest income
34 131
10 745
96 196
27 307
54 110
Total other interest income
88 293
39 534
258 646
97 739
174 402
Total interest income
633 974
320 238
1 703 559
779 162
1 253 877
Interest expenses on deposits to KLP Banken
-115 939
-37 038
-298 179
-84 363
-149 986
Interest expenses on issued securities
-367 200
-169 748
-976 776
-395 397
-668 276
Interest expense lease liabilities
-74
-81
-225
-247
-326
Total interest expense, effective interest method
-483 213
-206 868
-1 275 180
-480 006
-818 588
Other interest expenses
-28 269
-9 903
-77 564
-28 213
-49 595
Interest expenses on deposits to customers
-3 576
-4 252
-11 104
-12 755
-17 007
Total other interest expense
-31 845
-14 155
-88 668
-40 968
-66 602
Total interest expense
-515 059
-221 023
-1 363 848
-520 975
-885 190
Net interest income
118 915
99 215
339 711
258 188
368 687
Note 4 Loans to customers
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Principal on loans to customers
42 958 704
42 043 058
42 287 934
Credit portfolio
43 107
45 381
43 141
Overdraft current account
121
124
90
Write-downs step 1 and 2
-1 963
-1 534
-1 771
Write-downs step 3
-1 137
-1 045
-933
Loans to customers after write-downs
42 998 832
42 085 984
42 328 461
Accrued interest
254 271
119 815
145 049
Fair value hedging
-128 825
-119 654
-98 049
Loans to customers
43 124 278
42 086 145
42 375 461
Note 5 Categories of financial instruments
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Capitalized value
Fair value
Capitalized value
Fair value
Capitalized value
Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities
4 749 545
4 749 545
5 844 943
5 844 943
6 564 627
6 564 627
Financial derivatives
141 113
141 113
118 114
118 114
139 153
139 153
Shares and holdings
1 187
1 187
1 187
1 187
1 187
1 187
Total financial assets at fair value through profit and loss
4 891 845
4 891 845
5 964 244
5 964 244
6 704 966
6 704 966
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers
1 493 349
1 503 950
1 703 279
1 710 640
1 702 745
1 706 638
Total financial assets fair value hedging
1 493 349
1 503 950
1 703 279
1 710 640
1 702 745
1 706 638
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions
74 572
74 572
72 569
72 569
72 960
72 960
Loans to and receivables from central banks
1 274 225
1 274 225
1 204 247
1 204 247
1 320 087
1 320 087
Loans to and receivables from customers
41 630 929
41 630 929
40 382 866
40 382 866
40 672 715
40 672 715
Total financial assets at amortized cost
42 979 727
42 979 727
41 659 683
41 659 683
42 065 762
42 065 762
Total financial assets
49 364 920
49 375 521
49 327 205
49 334 566
50 473 474
50 477 367
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives
40 651
40 651
32 927
32 927
25 939
25 939
Total financial liabilities at fair value through profit and loss
40 651
40 651
32 927
32 927
25 939
25 939
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities
1 687 674
1 689 332
471 324
470 232
1 728 703
1 745 090
Total financial liabilities fair value hedging
1 687 674
1 689 332
471 324
470 232
1 728 703
1 745 090
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities created on issuance of securities
29 928 276
29 918 720
32 141 865
31 987 060
31 756 229
31 711 938
Deposits from customers
14 350 590
14 350 590
13 606 782
13 606 782
13 778 881
13 778 881
Total financial liabilities at amortized cost
44 278 867
44 269 311
45 748 647
45 593 842
45 535 109
45 490 818
Total financial liabilities
46 007 192
45 999 293
46 252 898
46 097 001
47 289 751
47 261 847
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.
The different financial instruments are thus priced in the following way:
Fixed-income securities - government
Nordic Bond Pricing is used as a source for pricing Norwegian government bonds. The prices are compared with the prices from Bloomberg to reveal any errors.
Fixed-income securities - other than government
Norwegian fixed-income securities, except government are priced directly on prices from Nordic Bond Pricing. Those securities that are not included in Nordic Bond Pricing are priced theoretically. The theoretical price is based on the assumed present value on the sale of the position. A zero-coupon curve is used for discounting. The zero-coupon curve is adjusted upwards by means of a credit spread, which is to take account of the risk the bond entails. The credit spread is calculated on the basis of a spread curve taking account of the duration of the bond. Nordic Bond Pricing is the main source of spread curves. They provide company-specific curves for Norwegian savings banks, municipalities and energy. Savings banks have various spread curves based on total assets.
Financial derivatives
These transactions are valued based on the applicable swap curve at the time of valuation. Derivative contracts are to be used only to hedge balance amounts and to enable payments obligations to be met. Derivative contracts may be struck only with counterparties with high credit quality.
Shares (unlisted)
For liquid shares and units, the closing price on the balance sheet date is used as the basis for measurement at fair value. If the prices are not quoted, the last price traded is used. Illiquid shares are priced on the basis of the Oslo Stock Exchange’s index algorithm based on the last traded prices. If the price picture is out of date, a derived valuation is produced from relevant equity indices or other similar securities. If this is also considered unsatisfactory, a discretionary valuation is made in which the Company’s financial key figures, broker assessment etc. are used.
Fair value of loans to retail customers
The fair value through profit/loss is calculated by discounting contractual cash flows to present values. The discount rate is determined as the market rate, including a suitable risk margin. For loans measured at fair value through other comprehensive income, the fair value is calculated as the recognised principal minus estimated loss provisions on loans classified in Stage 2 and 3 (see note 14 Loan losses provision).
Fair value of loans to Norwegian local administrations
The fair value of these loans is considered to be virtually the same as the book value, as the contract terms are constantly adjusted in line with market interest rates. The fair value of fixed rate loans is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin at the end of the reporting period. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.
Fair value of deposits
The fair value of floating rate deposits is taken to be approximately equal to the deposit amount including accrued interest. The fair value of fixed rate deposits is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin. Discounting contractual cash flows by market interest rates including a suitable risk margin.
Fair value of loans to and receivables from credit institutions
All receivables from credit institutions (bank deposits) are at variable interest rates. The fair value of these is considered to be virtually the same as the book value, as the contract terms are continuously changed in step with change in market interest rates. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.
Liabilities created on issuance of securities
Fair value in this category is determined on the basis of internal valuation models based on external observable data. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.
Note 6 Fair value hierarchy
30.09.2023 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
827 157
3 922 388
0
4 749 545
Shareholdings
0
0
1 187
1 187
Financial derivatives
0
141 113
0
141 113
Total assets at fair value
827 157
4 063 500
1 187
4 891 845
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)
0
40 651
0
40 651
Total financial liabilities at fair value
0
40 651
0
40 651
30.09.2022 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
801 640
5 043 302
0
5 844 943
Shareholdings
0
0
1 187
1 187
Financial derivatives
0
118 114
0
118 114
Total assets at fair value
801 640
5 161 416
1 187
5 964 244
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)
0
32 927
0
32 927
Total financial liabilities at fair value
0
32 927
0
32 927
31.12.2022 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
804 841
5 759 785
0
6 564 627
Shareholdings
0
0
1 187
1 187
Financial derivatives
0
139 153
0
139 153
Total assets at fair value
804 841
5 898 938
1 187
6 704 966
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)
0
25 939
0
25 939
Total financial liabilities at fair value
0
25 939
0
25 939
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance
1 187
1 187
1 187
Additions/purchases of shares
0
0
0
Unrealized changes
0
0
0
Closing balance
1 187
1 187
1 187
Realized gains/losses
0
0
0
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.
Level 1:
Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.
Level 2:
Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is therefore not considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.
Level 3:
Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.
Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost and according to the rules on hedge accounting. Financial assets measured at amortized cost and hedge accounting comprise lending to and due to credit institutions, Norwegian municipalities and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost and hedge accounting consist of debt securities issued and deposits. The stated fair value of these liabilities is determined by methods qualifying for level 2.
There have been no transfers between level 1 and level 2.
Interest rate on borrowings through the issuance of securities at the reporting date:
5.02 %
2.71%
3.62 %
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.
NOK THOUSANDS
Balance sheet 31.12.2022
Issued
Matured/ redeemed
Other adjustements
Balance sheet 30.09.2023
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount
34 763 119
7 200 000
-7 300 000
-4 141
34 658 978
Adjustments
9 932
0
0
-82 145
-72 213
Accrued interest
143 881
0
0
93 304
237 186
Own holdings, nominal amount
-1 432 000
0
-1 776 000
0
-3 208 000
Total debt securities issued
33 484 932
7 200 000
-9 076 000
7 019
31 615 951
Note 8 Financial assets and liabilities subject to net settlement
30.09.2023 NOK THOUSANDS
Related sums that are not presented net
Gross financial assets/liabilites
Gross assets/ liabilities presented net
Book value
Financial instruments
Security in cash
Net recognised value
ASSETS
Financial derivatives
141 113
0
141 113
-40 651
-104 349
17 441
Total
141 113
0
141 113
-40 651
-104 349
17 441
LIABILITIES
Financial derivatives
40 651
0
40 651
-40 651
0
0
Total
40 651
0
40 651
-40 651
0
0
30.09.2022 NOK THOUSANDS
Related sums that are not presented net
Gross financial assets/liabilites
Gross assets/ liabilities presented net
Book value
Financial instruments
Security in cash
Net recognised value
ASSETS
Financial derivatives
118 114
0
118 114
-32 927
0
85 186
Total
118 114
0
118 114
-32 927
0
85 186
LIABILITIES
Financial derivatives
32 927
0
32 927
-32 927
-1 714
0
Total
32 927
0
32 927
-32 927
-1 714
0
31.12.2022 NOK THOUSANDS
Related sums that are not presented net
Gross financial assets/liabilites
Gross assets/ liabilities presented net
Book value
Financial instruments
Security in cash
Net recognised value
ASSETS
Financial derivatives
139 153
0
139 153
-25 939
0
113 214
Total
139 153
0
139 153
-25 939
0
113 214
LIABILITIES
Financial derivatives
25 939
0
25 939
-25 939
-1 724
0
Total
25 939
0
25 939
-25 939
-1 724
0
The purpose of the note is to show the potential effect of netting agreements at the KLP Banken Group. The note shows derivative positions
in the financial position statement.
Note 9 Transactions with related parties
NOK THOUSANDS
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
KLP, fees lending management
45 938
42 833
57 951
KLP Skadeforsikring AS, fees
38
101
155
KLP Kapitalforvaltning AS, fees for services provided
0
0
-180
KLP, rent
-2 543
-2 037
-2 755
KLP Skipsbygget AS, rent
-1 628
-1 363
-1 867
KLP Bassengtomten AS, rent parking
-72
-67
-90
KLP Eiendomsdrift AS, cost office buildings
-401
-532
-532
KLP, pension premium
-10 451
-10 922
-14 485
KLP, staff services (at cost)
-56 591
-52 651
-71 410
KLP Group companies, subsidised interest employee loans
13 195
10 335
14 120
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
BALANCES
KLP, net internal accounts
-3 125
-6 301
-6
KLP, loan settlement
-10 862
-25 801
-28 988
KLP Group companies, net other internal accounts
1 512
1 366
1 252
Transactions with related parties are carried out at general market terms, with the exception of the
company's share of common functions, which are allocated at cost. Allocation is based on actual use.
All internal receivables are settled as they arise.
Note 10 Other assets
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Intercompany receivables
3 058
2 701
2 569
Miscellaneous receivables
25
0
2
Prepaid expenses
5 352
6 155
2 245
Total other assets
8 435
8 856
4 816
Note 11 Other liabilities and provision for accrued costs
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Creditors
4 698
510
1 742
Intercompany payables
15 533
33 437
30 311
Short-term balances with credit institutions
104 700
90 600
108 100
Other liabilities
92 162
18 673
3 026
Total other liabilities
217 093
143 219
143 180
Withholding tax
1 892
1 929
2 886
Social security contributions
1 531
1 408
2 425
Capital activity tax
520
509
869
Holiday pay
4 844
4 883
6 708
Pension obligations
14 247
38 408
32 092
VAT
954
697
28
Provisioned costs
2 676
6 964
9 206
Total accrued costs and liabilities
26 665
54 798
54 215
Note 12 Capital adequacy
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Share capital and share premium fund
2 190 000
2 190 000
2 190 000
Other owners' equity
726 875
602 142
776 466
Total owners' equity
2 916 876
2 792 142
2 966 466
Adjustments due to requirements for proper valuation
-4 750
-5 845
-6 565
Deduction goodwill and other intangible assets
-14 329
-16 155
-15 624
Core capital/Tier 1 capital
2 897 797
2 770 142
2 944 277
Supplementary capital/Tier 2 capital
0
0
0
Supplementary capital/Tier 2 capital
0
0
0
Total eligible own funds (Tier 1 and Tier 2 capital)
2 897 797
2 770 142
2 944 277
Capital requirement
1 146 913
1 127 732
1 138 790
Surplus of own funds (Tier 1 and Tier 2 capital)
1 750 884
1 642 410
1 805 487
Estimate basis credit risk:
Institutions
281 982
267 259
298 953
Retail
629 381
565 900
501 314
Local and regional authorities (incl. municipalities/county administations)
3 916 156
3 825 005
3 963 118
Investments with mortgage security in real estate
8 323 439
8 234 402
8 168 815
Investments fallen due
58 185
45 423
46 208
Covered bonds
372 612
460 261
502 740
Other holdings
26 563
28 848
24 731
Calculation basis credit risk
13 608 317
13 427 098
13 505 877
Credit risk
1 088 665
1 074 168
1 080 470
Operating risk
58 035
53 416
58 035
Credit valuation adjustments (CVA)
212
149
284
Total capital requirement assets
1 146 913
1 127 732
1 138 790
Core capital adequacy ratio
20.2 %
19.7 %
20.7 %
Supplementary capital ratio
0.0 %
0.0 %
0.0 %
Capital adequacy ratio
20.2 %
19.7 %
20.7 %
Leverage ratio
5.8 %
5.5 %
5.7 %
CAPITAL REQUIREMENT PER 30.09.2023
Core capital/Tier 1 capital
Supplementary capital/Tier 2 capital
Own funds
Minimum requirement excl. buffers
4.5 %
3.5 %
8.0 %
Protective buffer
2.5 %
0.0 %
2.5 %
Systemic risk buffer
3.0 %
0.0 %
3.0 %
Counter-cyclical capital buffer
2.5 %
0.0 %
2.5 %
Pilar 2-requirement
1.5 %
0.0 %
1.5 %
Current capital requirement incl. buffers
14.0 %
3.5 %
17.5 %
Capital requirement leverage ratio
3.0 %
0.0 %
3.0 %
Note 13 Fixed-income securities
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Acquisition cost
Market value
Acquisition cost
Market value
Acquisition cost
Market value
Certificates
336 643
337 104
80 037
80 185
693 949
697 059
Bonds
4 407 723
4 412 441
5 793 584
5 764 758
5 865 698
5 867 567
Total fixed-income securities
4 744 366
4 749 545
5 873 620
5 844 943
6 559 647
6 564 627
Fixed income securities are brought to account at market value, including accrued but not due interests.
Note 14 Loan loss provision
In the third quarter of 2023 the companies has not made any adjustments in the expected loss models. The total loan loss provosions in KLP Banken Group has increased by 10 percent. Refer to Note 10 and Note 2 in the annual report for more details of the model.
Expected credit loss (ECL) loans to customers – all segments
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
2 390
2 090
998
5 478
Transfer to stage 1
675
-531
-145
0
Transfer to stage 2
-36
40
-4
0
Transfer to stage 3
-2
-78
80
0
Net changes
-736
1 383
300
947
New losses
288
94
183
564
Write-offs
-214
-331
-240
-785
Change in risk model
45
0
0
45
Closing balance ECL 30.09.2023
2 409
2 667
1 172
6 249
Changes (01.01.2023 - 30.09.2023)
19
577
175
771
This includes provisions for losses on loans and receivables - unused credit
3 140
Expected credit loss (ECL) loans to customers – mortgage
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
144
207
422
774
Transfer to stage 1
8
-8
0
0
Transfer to stage 2
-7
7
0
0
Transfer to stage 3
0
-34
34
0
Net changes
-36
251
221
437
New losses
67
17
154
238
Write-offs
-27
-44
-91
-162
Closing balance ECL 30.09.2023
149
397
740
1 285
Changes (01.01.2023 - 30.09.2023)
5
189
318
512
This includes provisions for losses on loans and receivables - unused credit on mortgages
8
Expected credit loss (ECL) – public lending
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
184
0
0
184
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
-8
0
0
-8
New losses
23
0
0
23
Write-offs
-15
0
0
-15
Closing balance ECL 30.09.2023
184
0
0
184
Changes (01.01.2023 - 30.09.2023)
0
0
0
0
Expected credit loss (ECL) – credit card
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
2 040
1 883
516
4 440
Transfer to stage 1
667
-523
-145
0
Transfer to stage 2
-29
33
-4
0
Transfer to stage 3
-2
-44
47
0
Net changes
-692
1 132
42
482
New losses
194
77
6
277
Write-offs
-171
-287
-135
-592
Change in risk model
45
0
0
45
Closing balance ECL 30.09.2023
2 052
2 271
328
4 650
Changes (01.01.2023 - 30.09.2023)
12
388
-189
211
This includes provisions for losses on loans and receivables - unused credit on credit card
3 132
Expected credit loss (ECL) loans to customers – senior loans
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
21
0
0
21
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
1
0
0
1
New losses
4
0
0
4
Write-offs
-2
0
0
-2
Closing balance ECL 30.09.2023
24
0
0
24
Changes (01.01.2023 - 30.09.2023)
3
0
0
3
This includes provisions for losses on loans and receivables - unused credit on senior loans
0
Expected credit loss (ECL) loans to customers – overdrafts deposit accounts
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Opening balance ECL 01.01.2023
0
0
60
60
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net changes
0
0
37
37
New losses
0
0
23
23
Write-offs
0
0
-14
-14
Closing balance ECL 30.09.2023
0
0
106
106
Changes (01.01.2023 - 30.09.2023)
0
0
46
46
Book value of loans and receivables from customers – all segments
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
41 943 196
489 280
43 654
42 476 129
Transfer to stage 1
109 014
-108 542
-471
0
Transfer to stage 2
-333 332
337 314
-3 982
0
Transfer to stage 3
-6 920
-8 236
15 156
0
Net changes
-1 108 007
-7 811
-4 184
-1 120 002
New losses
9 229 019
86 792
12 089
9 327 900
Write-offs
-7 273 933
-142 323
-10 188
-7 426 444
Lending 30.09.2023
42 559 037
646 474
52 073
43 257 584
Book value of loans and receivables from customers – mortgages
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
20 906 667
485 896
41 976
21 434 538
Transfer to stage 1
107 334
-107 334
0
0
Transfer to stage 2
-331 968
335 944
-3 976
0
Transfer to stage 3
-6 641
-8 081
14 722
0
Net change
-557 549
-8 113
-4 030
-569 692
New lending
6 440 804
86 660
12 037
6 539 500
Write-offs
-5 577 248
-141 825
-9 834
-5 728 908
Lending 30.09.2023
20 981 397
643 147
50 895
21 675 439
Book value of loans and receivables from customers – public lending
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
19 215 331
0
0
19 215 331
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net change
-625 884
0
0
-625 884
New lending
2 436 384
0
0
2 436 384
Write-offs
-1 526 191
0
0
-1 526 191
Lending 30.09.2023
19 499 640
0
0
19 499 640
Book value of loans and receivables from customers – credit card
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
38 554
3 384
1 594
43 532
Transfer to stage 1
1 680
-1 209
-471
0
Transfer to stage 2
-1 364
1 370
-5
0
Transfer to stage 3
-256
-155
411
0
Net change
758
302
-183
876
New lending
3 917
133
20
4 070
Write-offs
-1 796
-498
-335
-2 628
Lending 30.09.2023
41 493
3 326
1 031
45 850
Book value of loans to receivables from customers – senior loans
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
1 782 407
0
0
1 782 407
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
0
0
0
0
Net change
75 650
0
0
75 650
New lending
347 909
0
0
347 909
Write-offs
-168 651
0
0
-168 651
Lending 30.09.2023
2 037 314
0
0
2 037 314
Book value of loans to receivables from customers – overdraft deposit accounts
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
239
0
84
322
Transfer to stage 1
0
0
0
0
Transfer to stage 2
0
0
0
0
Transfer to stage 3
-22
0
22
0
Net change
-982
0
29
-953
New lending
5
0
32
37
Write-offs
-47
0
-19
-66
Lending 30.09.2023
-806
0
148
-659
Exposure - unused credit
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
stage 1
stage 2
stage 3
Total stage 1-3
Lending 01.01.2023
1 339 781
54 926
231
1 394 938
Transfer to stage 1
8 445
-8 406
-39
0
Transfer to stage 2
-16 477
16 487
-10
0
Transfer to stage 3
-82
-2
83
0
Net change
-2 613
-1 876
0
-4 488
New lending
761 805
2 868
0
764 673
Write-offs
-400 593
-5 966
-142
-406 701
Other changes
323 962
0
0
323 962
Lending 30.09.2023
2 014 228
58 031
124
2 072 383
Losses recognised in the profit and loss account consist of:
NOK THOUSANDS
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Change in loss provisions in stage 1, 2 and 3
-1 346
276
-276
Established losses
-7
-776
-815
Recovery for previously established losses
331
550
768
Total losses in the income statement
-1 022
50
-323
Note 15 Contingent liabilites
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Credit facilities for lending not utilized
1 175 835
1 110 784
885 395
Credit facilities issued credit card
249 298
255 883
259 010
Loan promise
1 457 421
1 437 420
1 170 419
Total contingent liabilities
2 882 555
2 804 088
2 314 823
Credit facilities for lending not utilized: The 'Fleksilån' product is included here; this is a credit facility which allows the customer to borrow up to a specified credit limit.
Credit facitities issued credit card: Customers' credit card limits are a contingent liabilitiy for the Bank, where the customer cn choose to utilise the credit up to the allocated credit limit.
Loan commitment: The Bank issues funding certiticates that customers can use in bidding procedures for home purchases. This also inculudes other loans that have been granted but not disbursed.
Note 16 Net gain/(loss) on financial instruments
NOK THOUSANDS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Net gain/(loss) on fixed-income securities
8 727
-7 526
3 107
-34 636
-18 704
Net gain/(loss) financial derivatives and realized amortization linked to lending
317
44
439
337
270
Net gain/(loss) financial derivatives and realized repurchase of own debt
-3 675
-573
-9 633
-11 934
-12 335
Net accrual of over/under rates borrowings and securities
1 379
1 382
4 141
4 141
5 521
Other financial income and expenses
-314
-242
-946
-725
-1 004
Total net gain/(loss) on financial instruments
6 433
-6 916
-2 893
-42 817
-26 252
Note 17 Leases
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.
16 365
18 236
18 236
Depreciation
-1 403
-1 403
-1 870
Closing balance
14 962
16 833
16 365
LEASE LIABILITIES
Opening balance 01.01.
16 761
18 323
18 323
Repayments
-1 216
-1 166
-1 563
Closing balance
15 544
17 157
16 761
NOK THOUSANDS
Q3 2023
Q3 2022
01.01.2023 -30.09.2023
01.01.2022 -30.09.2022
01.01.2022 -31.12.2022
Property
Interest expense lease liabilities
74
81
225
247
326
Interest expense lease liabilities
74
81
225
247
326
In the fourth quarter of 2021, a new 10-year lease has been capitalized. It is an intercompany lease for the rental of
office premises with KLP Eiendom AS.
Note 18 Pension obligations - own employees
NOK THOUSANDS
30.09.2023
30.09.2022
31.12.2022
Capitalized net liability
32 092
36 693
36 693
Pension costs taken to profit/loss
10 231
10 745
14 307
Finance costs taken to profit/loss
946
725
1 004
Actuarial gains and losses incl. social security contributions
-15 315
-3 280
-11 094
Premiums/supplement paid-in including admin
-13 708
-6 475
-8 818
Capitalized net liability
14 247
38 408
32 092
ASSUMPTIONS
30.09.2023
30.09.2022
31.12.2022
Discount rate
4.00%
3.20%
3.00%
Salary growth
4.00%
3.75%
3.50%
The National Insurance basic amount (G)
3.50%
3.50%
3.25%
Pension increases
2.90%
2.75%
2.60%
Social security contribution
14.10%
14.10%
14.10%
Capital activity tax
5.00%
5.00%
5.00%
The effect of changes in the assumptions is a reduction of the obligation by NOK 15.3 million as of 30.09.2023.
The change is recognized in comprehensive income.
Quarterly earnings trend
NOK MILLIONS
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Interest income
634.0
551.4
518.2
474.7
320.2
Interest expense
-515.1
-440.7
-408.1
-364.2
-221.0
Net interest income
118.9
110.6
110.1
110.5
99.2
Commision income and income from banking services
8.4
8.0
6.5
7.7
8.1
Commision cost and cost from banking services
-0.7
-0.6
-0.7
-0.7
-0.7
Net charges and commission income
7.7
7.4
5.8
7.1
7.4
Other fee income
15.3
15.3
15.3
15.2
12.7
Net gain/(loss) financial instruments
6.4
-2.6
-6.7
16.6
-6.9
Total other operating income
21.7
12.7
8.6
31.7
5.8
Salaries and administrative costs
-20.6
-21.1
-22.1
-25.5
-18.1
Depreciation
-0.9
-1.0
-1.0
-1.0
-1.0
Other operating expenses
-44.6
-40.3
-47.9
-39.4
-38.1
Net loan losses
-0.6
-0.1
-0.3
-0.4
-0.2
Total operating expenses
-66.7
-62.5
-71.4
-66.3
-57.4
Operating profit/loss before tax
81.6
68.3
53.1
83.0
55.0
Tax ordinary income
-19.6
-16.4
37.0
-19.7
-13.1
Profit/loss for the period
62.0
51.9
90.1
63.3
41.9
Other comprehensive income
-2.0
15.9
1.4
7.8
0.5
Tax on other comprehensive income
0.5
-4.0
-0.3
-2.0
-0.1
Other comprehensive income for the period
-1.5
12.0
1.0
5.9
0.3
Comprehensive income for the period
60.5
63.9
91.2
69.2
42.2
Key figures – accumulated
NOK MILLIONS
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Q3 2022
Pre-tax income
203.1
121.5
53.1
180.5
97.5
Net interest income
339.7
220.8
110.2
368.7
258.2
Other operating income
66.9
43.9
21.1
85.0
62.8
Other operating cost and depreciation
-200.6
-133.9
-71.4
-247.0
-180.7
Net gain/(loss) financial instruments
-2.9
-9.3
-6.7
-26.3
-42.8
Deposits
14 350.6
14 524.0
14 136.2
13 778.9
13 606.8
Lending customers
23 753.6
23 481.3
23 332.8
23 258.4
23 368.6
Lending with public sector guarantee
19 370.6
19 449.1
19 384.1
19 117.1
18 717.6
Non-performing loans
52.1
42.6
45.6
43.7
42.8
Total liabilities created on issuance of securities